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City Council Regular Meeting Minutes 04 August 12, 2003 Page 4 1 over the next six weeks. Mr. Morrison added the H.R.A. would also approve a similar 2 resolution. 3 4 Motion by Councilmember Horst to adopt Resolution 03-063 calling for a public hearing by the 5 City Council on the proposed adoption of a modification to the Redevelopment Plan for 6 Redevelopment Project Area No. 3, the proposed establishment of Tax Increment Financing 7 District No. 3-5 and the adoption of a Tax Increment Financing Plan. 8 9 Motion carried unanimously. 10 11 C. Resolution 03-062, re: Approve internal loan to fund the redevelopment of the SAV II 12 Off-Sale Liquor Store. 13 Finance Director Larson noted he reviewed the following funding options for building of the 14 new SAV II off-sale store per staff's request: 1) issue Liquor Revenue Bonds, 2) cash on 15 hand/reserves or 3) internal loan. Mr. Larson stated an internal loan appeared to have the most 16 merit given the cost of issuing debt; and, after reviewing potential funds for an internal loan, he 17 indicated the water filtration funds could support this project. 18 19 Mr. Larson recommended Council authorize an internal loan (not to exceed $400,000) to fund 20 the new SAV II liquor store. He added the term of the loan was 10 years and interest was based 21 on declining principal at a rate of 5%. 22 23 City Manager Mornson stated there was a$365,000 shortage for building the new store after the 24 sale of the existing property. He indicated the internal loan funding option suggested by Mr. 25 Larson was recommended for adoption, as the total amount of the payments for the internal loan 26 was $75,000 less than borrowing the money through the issuance of a liquor revenue bond. 27 28 Mr. Morrison noted this was the final piece toward obtaining the City's new off-sale liquor store, 29 which would be part of the Spectators' redevelopment. 30 31 Motion by Councilmember Thuesen to adopt Resolution 03-062 to approve an internal loan from 32 the Water Filtration Fund (not to exceed $400,000) to fund the City's portion of the construction 33 of the new SAV II off-sale store. 34 35 Motion carried unanimously. 36 37 D. Ordinance 03-11, re: Fire works (1"reading). 38 City Attorney Gilligan introduced a proposed ordinance that addressed license fees and 39 regulation of the sale and use of Consumer Fireworks. He stated a new law awaiting the 40 Governor's signature would restrict the authority of cities to regulate the sale of Consumer 41 Fireworks. He added these limitations on the ability of the City to regulate the sale of Consumer 42 Fireworks had been addressed in the proposed ordinance since the new law is effective the day 43 after enactment and it was anticipated the law would be signed by the Governor. 44 45 Mr. Gilligan noted the license fees had been limited to the amounts provided in the new law. He 46 added the"per location" license fee language was maintained, as is the case with many other 47 license fees in the City. 624.20, Subdivision 1(d)(1).